Want this question answered?
Depreciation is charged to tangible assets while amortization is used to charge intangible assets.
If fixed assets are properly maintained, depreciation is unnecessary do you agree.?
on Fixed Assets
In accountancy depreciation refers to two different aspects: 1. the decrease in value of assets and 2. the allocation of the cost of assets to periods in which the assets are used.
Land is not subject to depreciation, depletion, or amortization.
for software it is 100% after one year. that is in Canada
Depreciation is charged to tangible assets while amortization is used to charge intangible assets.
Cost of depreciation assets and accumulated depreciation is same as accumulated depreciaton calculates how much depreciation is charged till date while remaining is current book value of assets.
If fixed assets are properly maintained, depreciation is unnecessary do you agree.?
depreciation of fixed assets reduces the profit as depreciation is also an expense.
on Fixed Assets
Intangible assets are subject to devaluation not depreciation.
In accountancy depreciation refers to two different aspects: 1. the decrease in value of assets and 2. the allocation of the cost of assets to periods in which the assets are used.
Land is not subject to depreciation, depletion, or amortization.
depreciation non current asseate
[Debit] Depreciation Account [Credit] Assets Account
By allowing businesses to depreciate their assets faster, the government (IRS) provides an incentive for firms to replace their assets quicker. This in turn stimulates the economy as firms are spending on capital expenditures more often.